New Rules from the European Parliament for Consumer Protection

The European Parliament has approved EU-level rules for the protection of collective consumer interests, the final step in the legislative process. This legislation, proposed by the Commission in 2018, will make collective redress available across the EU, covering a wide range of sectors, from financial services to passenger rights, from telecommunications to energy.
The Representative Actions Directive will allow consumers to cooperate and jointly take legal action to obtain compensation. It will provide for effective cross-border collective actions for redress measures between member states. Numerous safeguards will ensure that the procedure is not abused. For example, only qualified entities, such as consumer organizations designated by EU member states, will be able to bring actions. Today’s approval by Parliament follows the Council’s approval on November 4th. The Directive will enter into force 20 days after its publication in the Official Journal of the European Union, which is expected in December. Member states will have until January 2023 to transpose the new Directive into their national law.